From Making an Offer to Homeownership

You’ve found the home you want — now it’s time to make it yours. From submitting your offer to signing the final paperwork, the last mile of buying a home can move quickly. And with big financial decisions happening all at once, it’s easy to feel overwhelmed or caught off guard. That’s why we created this guide for first-time home buyers to help you navigate each step with clarity and confidence.

In this section of our First-Time Homebuyer Guide, we’ll walk through how to make a smart, competitive offer, what to expect during inspections and loan finalization and how to prepare for closing day.

Secure your mortgage and make an offer
Getting from “we love this place” to “it’s officially ours” involves paperwork, patience and several important financial decisions. This stage is where small details become important. Without a clear understanding of your mortgage options, you could end up with higher monthly payments than expected. Move too slowly, and another buyer might get their offer accepted first. And if your offer isn’t competitive or well-informed, you risk being overlooked — even if you're financially qualified.

Compare mortgage options
Not all home loans are created equal. Some offer long-term stability with fixed monthly payments, while others start with lower rates but can adjust over time. Knowing the difference can help you choose a mortgage that fits both your current budget and your future plans.

Here are the common types of mortgages to know:

• Fixed-rate mortgage. Your interest rate and monthly payment stay the same for the life of the loan. Ideal if you plan to stay in the home long-term and want predictability.
• Adjustable-rate mortgage (ARM). Offers a lower rate upfront that adjusts over time. This could be a good option if you plan to move or refinance within a few years.
• Conventional and FHA loans, including Jumbo options. Backed by the Federal Housing Administration, this loan type is popular with first-time buyers. It typically requires a lower down payment and has more flexible credit requirements.
• VA loan. Available to eligible veterans, active-duty service members and some surviving spouses. Often requires no down payment and no PMI.

And, importantly, don’t just compare interest rates. Ask your lender to explain the total cost of each loan, including fees, rate changes and long-term affordability.

Understand private mortgage insurance (PMI)
If your down payment is less than 20%, your lender will probably require private mortgage insurance (PMI). PMI protects the lender if you suddenly stop making payments, but it adds to your monthly costs without building equity for you. PMI typically adds 0.5% to 1.5% of your loan amount per year. On a $300,000 mortgage, that could mean an extra $125 to $375 per month.

Here are steps you can take to reduce or avoid PMI:

• Save for a larger down payment to reach the 20% threshold.
• Look for lender programs that offer low-PMI or no-PMI options.
•  Plan to refinance once you reach 20% equity.

Your lender should provide a breakdown of PMI costs upfront so you can factor it into your monthly budget from the start. If they don’t, ask for it.

Make a competitive yet realistic offer
In most markets, the offer process moves quickly. And finding the balance between standing out and staying within budget can be tricky, especially for first-time buyers.

Consider these factors:

• Comparable sales. Look at what similar homes in the area have recently sold for. Your agent can help pull comps to guide your pricing.
• Market conditions. Is it a buyer’s market or a seller’s market? That context will help shape your strategy.
• Your pre-approval letter. Including this with your offer shows the seller you’re ready to move and are financially qualified.
• Your walk-away number. Before you submit anything, decide the maximum you’re comfortable spending and be prepared to stick to it.

Lean on your lender and agent to help you evaluate the numbers and draft an offer that’s competitive, realistic and aligned with your goals.

Schedule a home inspection & secure homeowner’s insurance
Once your offer is accepted, two critical steps help protect your investment: a professional home inspection and homeowner’s insurance.

Home inspection. A licensed inspector will evaluate the home’s condition, including the foundation, roof, plumbing, electrical, HVAC systems and potential safety issues. If the inspection uncovers major problems, you can often renegotiate the purchase terms or walk away if needed.

Homeowner’s insurance. Most lenders require proof of insurance before final approval of your mortgage. A standard policy typically covers fire, theft and certain types of weather-related damage.

Prepare for negotiations
Even with a solid offer, the seller may come back with a counter. Every negotiation is different, depending on the home, the market, and what both parties need to move forward. This is a good time to lean on your advisors for guidance.

The seller may ask you to adjust:

• Purchase price. The seller wants a higher offer or asks you to cover more of the closing costs.
• Contingencies. You may need to modify your inspection window or financing timeline.
• Closing date. Being flexible with the move-in date can sometimes make your offer more appealing.

If you walk into negotiations knowing your priorities, you’ll be ready to stand firm when it counts.

Closing on your home
Closing is where everything becomes official. It’s also where small missteps can lead to costly delays. At this stage, there’s paperwork to review, final loan approvals to secure, inspections to complete and funds to transfer — all before you get the keys in hand. For first-time buyers, it can feel like standing in a storm. And a missed document, unexpected fee or sudden change in your financial situation could throw off your timeline. That’s why staying organized and proactive is key.

Understand closing costs
Closing costs are the final expenses you’ll pay before officially taking ownership of your home, and the total cost can be surprising if you’re not prepared.

Be ready to pay:

• Lender fees. Loan origination, application and underwriting fees
• Title insurance and escrow fees. Protects against ownership disputes and covers the cost of third-party services
• Home appraisal. Confirms the home’s value to your lender.
• Legal or recording fees. Covers document preparation and filing with the county.

All in, you should expect to pay between 2% and 5% of the home’s purchase price in closing costs. On a $300,000 home, that’s $6,000 to $15,000 in addition to your down payment. Be sure to ask your lender for a Closing Disclosure at least three business days before closing. This document — which is required by law — outlines every charge in detail so you can review, ask questions and avoid surprises.

Review loan terms and finalize mortgage approval
Before closing day, your lender will provide two key documents: a loan estimate (early in the process) and a closing disclosure (just before closing). Together, these documents spell out the full cost of your loan and confirm that there are no last-minute surprises. This is your chance to double-check the details and make sure the loan still meets your expectations.

Take time to review:

• Final loan amount
• Interest rate
• Monthly payment (including taxes and insurance)
• Total closing costs
• Loan type and terms (e.g., fixed-rate vs. ARM, 30-year vs. 15-year)
• Title & Insurance
• Closing disclosure

If anything looks different than what you discussed with your lender, speak up right away. It’s easier to fix issues before you get to the closing table than after.

Complete a final walkthrough
The final walkthrough usually takes place within 24 hours of closing. It’s quick, but that doesn’t mean it’s a formality. This is your last chance to make sure the home is in the condition you agreed to buy it in.

Here’s what to check:

• Repairs. Make sure any repairs the seller agreed to have been completed.
• Systems and appliances. Test lights, faucets, toilets, HVAC, and major appliances.
• General condition. Make sure nothing has changed since your last visit — no new damage, no items removed that were meant to stay and nothing left behind that you didn’t expect to have to deal with.

Bring a checklist, take your time and don’t be afraid to ask questions. If anything seems off, flag it before signing.

Close the deal and get your keys
Closing day is when everything becomes official, and you become a homeowner. But before you celebrate, there are final steps that need to be completed. You’ll start by signing the official paperwork, including your mortgage agreement, promissory note and property deed. Then, you’ll submit your closing costs, usually via wire transfer or cashier’s check. Take a moment to double-check your final loan terms, including the interest rate, total loan amount and monthly payment. It’s your last opportunity to flag any issues before everything is finalized.

Once that’s done, you’ll receive the essentials for your new home — keys, garage openers, door codes, appliance manuals and any remaining documents the seller has passed along.

Lastly, be sure to store all of your closing documents in a secure place. You may need them for taxes, insurance or refinancing down the road.

As a new homeowner, there are a few steps you’ll want to take as you unpack the boxes. Start by setting up your utilities and confirming that water, power, internet and other services are in your name and ready to go. It’s also smart to change the locks or reprogram any keypads to make sure you’re the only one with access to your home.

Review your first mortgage payment due date and confirm how and where to make your payments. Then, begin planning for ongoing maintenance and future home expenses — from seasonal repairs to savings for long-term updates.

Buying your first home is a big step
There’s more than one way to finance a home. Whether you’re looking for steady payments or a lower starting rate, Comerica can help you understand your options and what best fits your budget and long-term plans. Schedule a conversation with our Mortgage Lending team at Comerica today to answer to your questions and take the next step toward owning a home.

If you’re still looking for the home you want, check out our First-Time Homebuyer Guide: How to Find the Right Home and Avoid Costly Mistakes.